Indian Mutual Funds: Low Silver Holdings in July 2026

Only 29 out of 528 diversified and hybrid mutual fund schemes screened held silver in their portfolios as of July 2026, indicating a significantly limited allocation to the metal despite its recent strong performance.

This minimal exposure contrasts sharply with gold holdings within the same investment universe. Silver’s unique dual nature as both a monetary asset and an industrial metal contributes to its distinct market behavior and volatility.

Key Silver Allocation Figures

• Largest single allocation to silver: 7.2%
• Largest gold allocation in the same universe: 26.02%
• Median silver weight in Multi-Asset Allocation Funds that do hold silver: 2.09%

Approximately half of the global demand for silver stems from industrial applications, which include critical components for solar panels, electric vehicles, and various electronics. This industrial dependency makes silver’s price more susceptible to economic shifts than gold.

Industrial slowdowns can directly impact silver demand, leading to price fluctuations. Additionally, an increase in silver prices can reduce consumer interest in jewelry and silverware, further affecting market dynamics.

Investment Avenues for Silver

Investors seeking exposure to silver through mutual funds have three primary routes, each with distinct characteristics and fee structures.

• Silver ETFs: These funds directly hold physical silver, with the Nippon India Silver ETF (SILVERBEES) noted as the largest in this category.
• Silver Fund of Funds (FoFs): These schemes invest in Silver ETFs, offering the convenience of Systematic Investment Plans (SIPs) without requiring a demat account, though they introduce a second layer of fees.
• Multi-Asset Allocation Funds: Mandated to hold at least 10% in three different asset classes, these funds frequently incorporate gold but rarely silver. The Kotak Multi Asset Allocation Fund stands out as a notable exception, demonstrating a preference for silver over gold.

Funds with substantial gold exposure typically maintain minimal or no silver holdings, reflecting differing investment strategies. Investors must carefully evaluate a scheme’s mandate, associated costs, portfolio composition, and their individual risk tolerance before committing to silver investments.

Given silver’s inherently higher volatility compared to gold and the potential for supply chain tightness in industrial applications, a thorough assessment is crucial for informed decision-making.